The Home Equity Access Scheme offers older Australians who are of Age Pension age or older the opportunity to obtain a voluntary, non-taxable loan from us. This loan requires the use of equity in Australian real estate as security. To assist in making an informed decision about applying for a loan, we provide calculators for your convenience. If you have a Centrelink online account, you can access these calculators through your account for a more accurate estimate. If you do not have an account, you can access:
Once you have determined the amount you can borrow, you have the flexibility to choose the loan amount that best suits your needs. You can opt to receive the loan amount as:
- a fortnightly payment
- an advance lump sum,
- a combination of both.
Repayment of the loan, along with interest and legal costs, is required. Information on repayment options is available for your review.
The current interest rate for the loan is 3.95% per annum, compounding each fortnight on the loan balance until the loan is fully repaid. It is important to note that the longer it takes to repay the loan, the more interest will accrue.
The Home Equity Access Scheme loans are backed by a no negative equity guarantee, providing added security for borrowers.
For veterans interested in applying for the Home Equity Access Scheme, detailed information can be found on the Department of Veterans’ Affairs (DVA) website.
Who is eligible?
To qualify for a Home Equity Access Scheme loan, there are specific requirements that must be met. These include:
- You or your partner must be of Age Pension age or older
- You must receive or be eligible to receive qualifying pensions for the Home Equity Access Scheme
- You or your partner must own real estate in Australia that can be used as security for the loan.
- You, your partner, or any co-owner of the property must not be bankrupt or subject to a personal insolvency agreement.
- Adequate and appropriate insurance must be in place to cover the real estate offered as security.
Adequate insurance coverage is defined as being at least 90% of the value of the buildings on the property being used as security. The property may not be adequately insured if there have been changes in the insurance level, lapses in coverage, reductions in insurance level or coverage, or changes in insurance providers. Any significant changes to the insurance policy must be reported within 14 days.
You may qualify for the loan if you currently receive a qualifying pension or meet the requirements for a qualifying pension but do not receive a payment due to exceeding income or asset thresholds. If you are receiving or eligible for Farm Household Allowance and do not qualify for Age Pension due to income and assets, you may still be eligible for the Home Equity Access Scheme.
To apply for the loan, you must agree to the terms and conditions of the Home Equity Access Scheme. If you have a partner, they must also agree to your application by signing it or completing an online task on their Centrelink online account.
You can utilize our Home Equity Access Scheme eligibility calculator to determine if you are eligible to apply.
The Financial Information Service officers are available to provide you with valuable information to assist you in making the best decision for your financial needs.
If you are receiving a hardship payment
If you receive a payment under the asset hardship provisions, you are still eligible to apply for the Home Equity Access Scheme. However, you cannot receive payments under both provisions simultaneously. If your application is approved, you will need to decide which payment option is most suitable for your situation.
If you are considering applying for a loan, it is recommended that you seek independent legal or financial advice to ensure you make an informed decision.
How much can you get?
The loan payments you receive through the Home Equity Access Scheme are determined by whether or not you receive a pension. Additionally, the amount you receive depends on the method you choose to receive your loan, which includes receiving:
- a fortnightly amount,
- an advance lump sum payment,
- a combination of both.
The Scheme will continue to make loan payments until you reach the maximum loan amount. If you opt for an advance payment. it may result in a reduction of the fortnightly loan amount you are eligible to receive for 26 fortnights. For more information, please visit our website.
If you receive a pension
Your total loan and pension payment every two weeks cannot exceed 150% (1.5 times) of your maximum rate of pension.
If there are any changes to your pension, we will modify your loan payments to ensure that the total amount does not exceed 150% of your pension rate.
If you don’t get an Aged Pension
If you do not receive a pension, you still have the option to obtain a loan through the Home Equity Access Scheme. This scheme allows you to receive a fortnightly loan payment of up to 150% of the maximum rate of your qualifying pension. If you are of Age Pension age or older, your qualifying pension will be the Age Pension.
Calculators are available to help you determine your:
- maximum loan amount
- visualize what a loan may look like for you in the future under the Home Equity Access Scheme.
For a more accurate result, you can use the calculator on your Centrelink online account linked to myGov.
To access the calculator on myGov, follow these steps:
- Sign in to myGov.
- Select Payments and claims.
- Under Manage payments, choose the Home Equity Access Scheme calculator.
Steps to take prior to submitting your application
Before applying for the Home Equity Access Scheme, it is important to carefully consider several key factors. These include:
- evaluating your current and future financial situation,
- understanding the potential impact of compound interest compound interest on the loan,
- planning for the repayment of the loan.
It is highly recommended that you seek independent legal or financial advice before proceeding with your application. This will ensure that you fully understand the terms and conditions of the scheme and make informed decisions regarding your financial future.
Additionally, it is essential to verify that you meet all eligibility requirements for the Home Equity Access Scheme before initiating the application process. You may also want to consider appointing a representative Scheme to communicate with us on your behalf regarding the loan.
Furthermore, the Scheme offers a variety of tools and resources to assist you in effectively managing your finances. These resources can help you make informed decisions and navigate the complexities of the Home Equity Access Scheme with confidence
How to apply?
Procedures for applying to the Home Equity Access Scheme
- Prepare for Your Application
The most convenient way to apply for the Home Equity Access Scheme is through the online portal. To begin the application process online, you must have a Centrelink online account linked to myGov. If you do not already have these accounts, you will need to create them before proceeding.
In order to qualify for the scheme, either you or your partner must be of Age Pension age at the time of application. If you are below the Age Pension age, you must meet the following criteria:
- Your partner is of Age Pension age
- You are eligible for Carer Payment or Disability Support Pension
If you do not currently receive any of these payments, you must apply for one before applying for the Home Equity Access Scheme. It is important to gather all necessary supporting documents to assist in completing the application.
Verification of identify may be required before initiating the application process. If you have a partner, they will also need to verify their identity before the application can be submitted. Alternatively, if you have a nominee with legal authority to manage your real estate and finances, they can apply for the scheme on your behalf.
For assistance with the application process, please contact us on the older Australians line. Veterans can find information on how to apply for the Home Equity Access Scheme on the Department of Veterans’ Affairs (DVA) website.
- Make Your Claim
If you can apply online through your Centrelink account linked to myGov, you can easily make your claim online. Here’s how:
- Sign in to myGov.
- Select “Make a claim” or “View claim status,” then click on “Make a claim.”
- Under “Older Australians,” select “Get started.”
- Choose “Apply for a loan” under the Home Equity Access Scheme and follow the prompts to complete your claim.
If you are unable to apply online, you or your nominee can download and complete one of the following forms:
- If you are single, use the Home Equity Access Scheme single application form (SA496)
- If you have a partner, use the Home Equity Access Scheme partnered application form (SA310)
If you or your nominee are unable to access a form, you can:
- Call the Older Australians line
- Visit a services centre.
- Tracking Your Application
Once you or your nominee have submitted your application online, you will receive a receipt containing the following information:
- The ID number of your application
- The estimated completion date of your application
- A link to track the progress of your application
To monitor the progress of your application online, simply login to myGov and select “Make a claim” or “View claim status.”
You or your nominee can also utilize the Express Plus Centrelink mobile app for tracking purposes.
If electronic letters are not received, a physical letter will be sent via mail.
Additional details may be requested if necessary.
If you or your nominee believe an error has been made, you have the option to request a review of the decision.